Google raises offer for On2

Google has raised their offer to purchase On2 Technologies by 20 percent, to $134 million USD, a few months after shareholders denied the company's first offer.

The video compression company will now receive the $134 million in cash as well as 0.0010 of a share of Google Class A common stock for every share of On2 they currently have. Google trades for about $599 a share while On2 is currently trading for $0.74 cents.

Google announced it would purchase the company in August, however On2 shareholders were unhappy with the valuation of the buyout. The new offer is a final offer.

YouTube-parent Google says the purchase will help the continued spread of Internet video given On2's video compression technology which will shrink video files and make them easier to send for those with slower connections.